Respuesta :

Answer:

Break even sales = $17,500 (Approx.)

Step-by-step explanation:

Given:

Fixed expenses = $7,000

Contribution ratio = 40%

Find:

Break even sales dollars

Computation:

Break even sales = Fixed expenses / Contribution ratio

Break even sales = 7,000 / 40%

Break even sales = 7,000 / 0.40

Break even sales = 17,500

Break even sales = $17,500 (Approx.)

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